Australians shelled out more than $4.1 billion in bank fees last financial year, an increase of $268 million from the previous year, RBA data shows.
This equates to around $412 per household in the year, assuming there are roughly 10 million households in the country. This excludes business banking fees.
The data, which was released by the central bank yesterday, shows credit cards are stinging households the most, of those that have one, with an eye-watering $1.7 billion paid last financial year, up 10% from 2023-24. While the number of credit card accounts has remained relatively steady, the RBA noted a rise in overseas transaction and annual fees.
Home loans recorded the largest jump, rising by $167 million or 17% in the 12 months to the end of June 2025, partly in relation to growth in the market, but also reflective of the fact more customers are refinancing which can be fee-intensive.
In more encouraging news, exception fees, which are fees paid when a customer slips up, fell by almost $13 million or 3% in the year. These fees include things such as late fees and overdraft charges.
How much Australian | ||
|---|---|---|
Category | Amount | Change |
Credit | $1.7 | +$151 |
Home | $1.2 | +$167 |
Transaction | $765 | +$16 |
Personal | $316 | -$75 |
Deposit | $93 | +$7 |
Other | $43 | +$863,000 |
TOTAL | $4.1 | +$268 |
Exception fees | $425 | -$13 |
Source: RBA Domestic Fee Data 30 June 2025, released 28 May 2026 prepared by Canstar. Excludes business fees.
Australians could wipe majority of fees by shopping around
Our analysis shows Australians could potentially wipe out many of the banking fees they pay by negotiating or switching to lower-fee options.
Credit cards
The two main fee culprits are the annual fee, and currency conversion fees—charged when someone buys an item in a foreign currency.
- The average credit card annual fee is $204, yet, 12 lenders have at least one card with no fee at all.
- The most common currency conversion fee is 3.0%, however, there are at least seven providers that waive these fees including CBA, Westpac, and NAB on select cards.
Home loans
The most common fees in mortgages are ongoing fees, paid every year you have the mortgage, and upfront fees paid on application, which can often be negotiated.
- The average ongoing fee for home loans is $278 a year, of those that charge one;
- However, 90% of lenders on Canstar have a low-fee option that doesn't charge an annual fee.
Bank accounts
Transaction accounts typically don’t charge ongoing fees, however, most still charge a fee for international transactions and ATM withdrawals overseas.
- The most common currency conversion fee is 3.0%;
- However, there are at least 10 banks that don’t charge a fee.
Fees are only one piece of the puzzle
Canstar's Data Insights Director, Sally Tindall, says, “Australians shelled out a staggering $4.1 billion last financial year in bank fees across home loans, credit cards, even on humble bank accounts.”
“While fees are growing like a beanstalk — up $268 million in just 12 months — people have more power to cut these down than they realise. Whether it’s negotiating a mortgage application fee or switching to one of the 12 credit card lenders that have no-fee cards, there are ways and means to slash your fees back to their roots.
“Home loan fees saw the sharpest hike this year, jumping 17 per cent to a total of $1.2 billion. This is partly a side effect of the refinancing boom, as Australians hunt for better rates. However, borrowers need to remember that while a discharge fee from your old bank is usually set in stone, the upfront fees at a new bank are often up for negotiation.
“In a competitive market, asking your new lender to waive application fees could save you hundreds before you’ve even made your first payment.
“Currency conversion fees are fast becoming a thorn in the side of our shopping habits, with most banks adding a 3 per cent surcharge just to convert a foreign purchase into Aussie dollars.
“While this may seem like an easy way to shop overseas and avoid the complexities of things like travel cards, it’s important to know not all providers sting their customers with this international fee.
“One bright spot in this data is the decline in exception fees, which fell by $13 million. It shows that Australians are wising up to avoidable bank fines like late payment and overdraft charges.
“We’re getting better at managing our money to avoid the slip-ups, now we need to apply that same scrutiny to fixed fees like annual credit card charges and mortgage packages.
“While fees are only one piece of the puzzle when it comes to choosing a financial product, and often a relatively minor component of the equation, that doesn't mean they should be overlooked entirely.
“Fees aren’t like death and taxes. Typically, they can be negotiated. Sometimes, even wiped clear.”
